Greece will not block Eldorado’s gold mining operations

25 February 2015 (Last Updated February 25th, 2015 18:30)

An energy ministry official has said that Greece's new government will not oppose Canadian Eldorado Gold's mining operations in the country.

Skouries

An energy ministry official has said that Greece's new government will not oppose Canadian Eldorado Gold's mining operations in the country.

The official said that, although the government will not hinder the gold-producing company, the ministry will review its permits for building a processing plant at the site.

This latest announcement comes after Greece dropped its plan to stop asset sales, while rolling back obligations under its bailout EU / IMF programme, Reuters reported.

In January, a minister told the news agency that the Greek Government was 'absolutely' opposed to the Skouries gold mine run by Eldorado.

"[The ministry will] examine whether permits for the processing plant being built are in-line with the law."

Further, the ministry planned to review the operation's activities and examine whether permits for the processing plant being built are in-line with the law.

Operated by Eldorado Gold, Skouries gold mine in northern Greece was claimed to be the flagship project of the last government's foreign investment drive, according to Financial Post.

Skouries was acquired by the company in 2012 and a $1bn investment was announced for a period of five years.

The ministry then said that the gold mine had faced various controversies and violent local protests for years.

Skouries mine has estimated reserves of 5.3 million ounces of gold and 246.4 million tonnes of ore, grading at 0.49% copper.


Image: Development works at Skouries mine, Chalkidiki, Greece. Photo: courtesy of antigoldgr.org.